UNILEVER reported worse than expected underlying quarterly sales on Thursday after it was unable to win back shoppers it had alienated in recent years with higher prices.
The maker of Dove soap and Hellmann’s condiments reported a 3.9 percent rise in second-quarter underlying sales, missing an average analyst forecast of a 4.2 percent increase in a company-compiled consensus.
Underlying price growth for the quarter was 1 percent, behind market expectations, but underlying volume sales growth ran ahead of estimates at 2.9 percent.
“There is much to do, but we remain focused on transforming Unilever into a consistently higher performing business,” CEO Hein Schumacher said in a statement.
The company maintained its underlying sales growth forecast of 3 percent to 5 percent, mostly driven by volume. Underlying operating margin for the year is expected to be at least 18 percent, it said.
Underlying operating profit rose 17 percent to 6.1 billion euros ($6.61 billion) for the six months to June while the underlying operating margin widened 250 basis points to 19.6 percent, although the company expects that to slow in the second half.
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